SAL Automotive - SAL Automotive

📊 BSE: 539353 🏢 Auto Components & Equipments 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 23% YoY to INR 379.49 Cr. Agriculture Implements revenue grew 38.2% to INR 222.47 Cr (driven by a 36.2% increase in Rotavators to INR 219.28 Cr). Automotive Components revenue grew 0.8% to INR 147.86 Cr, with Seats for Tractors & CVs growing 12.5% to INR 90.89 Cr, while Seat Mechanisms declined 28.1% to INR 16.30 Cr.

Geographic Revenue Split

Not explicitly disclosed by percentage, but the company identifies Western and Southern India as key manufacturing hubs where it is exploring new facilities.

Profitability Margins

Operating Profit Margin declined from 4.4% to 3.8% (an 18% decrease) due to higher revenue contribution from lower-margin segments and increased overheads. Net Profit Margin also declined 18% from 1.6% to 1.4%.

EBITDA Margin

Not explicitly disclosed as EBITDA, but Operating Profit Margin stood at 3.8% in FY25, down from 4.4% in FY24.

Capital Expenditure

Depreciation increased to INR 4.28 Cr from INR 4.11 Cr, primarily due to additional capital expenditure made during the year to support manufacturing hubs and agriculture implement capacity.

Credit Rating & Borrowing

Not disclosed in available documents; however, the Debt Equity Ratio improved by 19% to 0.51 primarily due to debt repayments.

⚙️ Operational Drivers

Raw Materials

Not explicitly named, but raw material costs represent 79.7% of net revenue from operations, up from 78.1% in the previous year.

Capacity Expansion

The company has enhanced capacity for manufacturing Agriculture implements (Rotavators) and is exploring new facilities near automotive hubs in Western and Southern India to strengthen its auto ancillary business.

Raw Material Costs

Raw material costs as a percentage of net revenue stood at 79.7% in FY25 compared to 78.1% in FY24. The increase was attributed to a surge in global demand and growth in sales volume of products with higher material costs.

Manufacturing Efficiency

Inventory Turnover Ratio improved by 29% to 13.46 times, indicating better control and efficiency in inventory management during the year.

Logistics & Distribution

Sales and distribution expenses are part of 'Other Overheads' totaling INR 63.80 Cr (up from INR 54.49 Cr).

📈 Strategic Growth

Growth Strategy

Growth will be achieved through expansion into Indian Railways coach components (seats and berths), development of seats for EV Commercial Vehicles, and setting up new facilities near automotive hubs in Southern and Western India. The company also leverages the 'Make in India' initiative and contract manufacturing for Rotavators, which now contributes 60% of revenue.

Products & Services

Seats, seat mechanisms, seat frames, Rotavators, planters, Rotary Tillers, Box Scrappers, EV Commercial Vehicle seats, and Railway coach berths.

Brand Portfolio

SAL Automotive Limited.

New Products/Services

New products include Veg Planters (contributing INR 6.77 Cr in FY25), EV Commercial Vehicle seats, and Indian Railways coach components.

Market Expansion

Targeting expansion in Western and Southern India near automotive manufacturing hubs and increasing presence in the Indian Railways sector.

Strategic Alliances

The company performs contract manufacturing for Rotavators, which accounts for 60% of its total revenue.

🌍 External Factors

Industry Trends

The Indian auto industry grew 9.1% in production (3.10 crore vehicles). The tractor industry grew 6.4% in production (10.08 lakh units), while the commercial vehicle segment saw a de-growth of 3.3%.

Competitive Landscape

Faces increasing competition in both automotive components and agricultural implements sectors.

Competitive Moat

Moat is based on being a preferred OEM supplier and a dominant player in the agricultural implement contract manufacturing space (60% revenue share). Sustainability is driven by diversifying into EV and Railway segments.

Macro Economic Sensitivity

Highly sensitive to rural demand and rainfall distribution, which directly affects the tractor and agricultural implement sectors.

Consumer Behavior

Shifts in buying patterns and replacement demand in the rural sector are key drivers for agricultural implements.

Geopolitical Risks

Influenced by global demand surges and commodity price fluctuations resulting from post-pandemic economic scenarios.

⚖️ Regulatory & Governance

Industry Regulations

Operations are influenced by government policies on procurement, safety regulations, and emission standards for the automotive and tractor industries.